No matter what the size of an organization is, whether it’s from the manufacturing, finance, pharmaceuticals, or tech industry, there’s no denying the benefits effectuated by outsourcing. By outsourcing tasks and processes to offshore service providers, businesses can focus on their core functions as outsourced services take a chunk of the workload off their backs.
Businesses are realizing a more efficient workforce, effective process solutions, and ultimately, a increase in profit and revenue. In the Philippines, the cost of living is generally lower than countries in the west, and this trickles down to lower wages and telecommunications costs. As a result, companies can save up to 60% in costs when they outsource services than if they build an onshore office. The cost efficiency of outsourcing solutions is why the demand for outsourcing services continues to increase.
In 2017 alone, BPO industry also managed to generate $23 billion in revenue. According to recent reports, outsourcing companies in the Philippines have significantly increased in numbers, covering 10% to 15% of the global market share.
There are now over 1.3 million employees in the BPO industry. In the next three years, it has been predicted that the industry will open another 1.3 to 1.5 million new jobs, which further proves that outsourcing does provide significant advantages to businesses. In fact, approximately three newly registered companies in the industry are providing job opportunities every week at the beginning of 2018.
Because of outsourcing services, companies can save costs and time from hiring an employee for each position needed, including but not limited to accounting, payroll, sales, and even digital marketing. For example, an insurance company can focus more on their niche than to stress about the SEO of their website.
What a waste it would be to pay certain taxes and shoulder employee benefits such as dental and medical insurance, as well as allot time for training to someone who never had plans of staying with the company for very long. With outsourced staff who follow strict documentation and a turnover process, the company is shielded from potential profit losses due to the lack of workforce to continue the ongoing projects.
Aside from that, having an outsourced staff help create a healthier work-life balance among in-house employees. They no longer have to extend working hours or even sacrifice their weekends just to meet deadlines. Aside from that, being able to focus on their main task helps raise employee morale. Lastly, in-house employees will also have enough time to develop their professional skills and knowledge that will contribute to the company’s bottom line.
Outsourced companies offer qualified and highly-experienced professionals to their partners, saving companies time from training and onboarding sessions. In the end, hiring outsourced services give small and mid-sized companies a chance to compete with large enterprises.
As the competition in the outsourcing industry continues to tighten, companies need to ensure that their services remain effective and efficient. Here’s an infographic to help you further understand the functions and benefits of hiring an outsourced staff for your company.